Authorities in Bristol, Leeds and Manchester will get help from The Carbon Trust and the Energy Saving Trust to develop low carbon economies.
Boosting renewable energy and implementing trigeneration - creating power, heat and cooling from one source - are to be considered.
Energy-saving measures like promoting cycling will also be promoted.
'Cutting emissions'
Minister for climate change Joan Ruddock said: "Our cities were once at the forefront of the industrial revolution.
"Now they have the opportunity to lead the way again and be the driving force behind our push to a low carbon economy.
"Creating targeted action plans will help them achieve this by setting a clear path for cutting emissions."
Five other cities - Birmingham, Liverpool, Newcastle, Nottingham and Sheffield - are to audit their current CO2 emissions and identify ways to cut them.
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